Euro is getting help today from an improved global economic outlook. With the world economy looking a little better, with help from the latest news out of the United States as well as earlier news from China, optimism is driving interest in risk assets like the euro.
Earlier in the session, the euro hit an 11-month high against the US dollar as the global economic outlook became the subject of optimism. Signs that the global economy is heading for recovery are all around, from every corner of the globe. Strong US corporate earnings are helping, and yesterday’s unemployment claims number is also helping.
But it’s not just improvements in the United States that are helping fuel optimism in the global economy and for the euro. Germany is showing some solid growth as the new year begins. As the largest economy in the eurozone, Germany is often looked to as a leader for the economy and as a driver for the euro.
On top of that, manufacturing data out of China is encouraging as well. The global economy appears poised for growth, and that is helping the euro.
At 16:10 GMT EUR/USD is up to 1.3465 from the open at 1.3366. EUR/GBP is up to 0.8519 from the open at 0.8461. EUR/JPY is up to 122.47 from the open at 120.88.
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